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Nissan Chemical, ‐where unique & solution meet

November 4, 2016

Presentation for Investors 1H FY2016 (April 1 – September 30, 2016) Financial Results

Presented by Junichi Miyazaki, Director and Senior Executive Vice President

Translation of presentation materials for the investor meeting held in Tokyo on November 4, 2016

3

1H FY2016 PL 1H

FY20151H

FY2016 ChangeChange

(%)

1H FY2016Outlook as of

May 2016

Sales 83.7 84.5 +0.8 +1.0% 86.0Operating Profit 14.3 14.7 +0.4 +3.3% 13.3Non-Operating Income/Expenses 0.8 -0.5 -1.3 -160.4% 0.0Ordinary Income 15.1 14.2 -0.9 -6.1% 13.3Extraordinary Income/Loss 0.0 0.0 +0.0 - 0.0Net Income (1) 11.1 10.6 -0.5 -4.9% 10.2EBITDA (2) 18.7 18.8 +0.1 +0.5% 17.6EPS (\ ) 71.21 69.00 -2.21 -3.1% 66.56Dividend (\ /share) 18 24 +6 24Total amount of Dividend 2.8 3.7 +0.9 3.7OP Margin 17.0% 17.4% +0.4% 15.5%FX Rate (\ /$) 122 105 115Naphtha (\ /KL) (3) 48,000 31,400 35,400

Comprehensive Income 9.6 7.4

Record

Record

(¥billion)

(1) Net income = Profit Attributable to Owners of Parent (2) EBITDA = Operating Profit + Depreciation (3) Based on Trade Statistics of Japan Ministry of Finance (1H FY2016: Based on actual April-September data)

4

1H FY2016 Review （Sales） ◆Up ¥0.8 billion (+1%) (＋) Agrochemicals, Trading (±) Pharmaceuticals (－) Chemicals, Performance Materials

（OP） ◆Up ¥0.4 billion (+3%) (＋) Agrochemicals (±) Pharmaceuticals (－) Chemicals, Performance Materials, Trading （Non-Operating Income and Expenses） ◆Down ¥1.3 billion

（Ordinary Income） ◆Down ¥0.9 billion (-6%)

（Net Income） ◆Down ¥0.5 billion (-5%)

（EPS） ◆Down ¥2.21 (-3%)

＜vs. 1H FY2015＞

＜vs. 1H FY2016 Outlook as of May 2016＞

(Dividend) ◆ 1H ¥24/share, 2H ¥26/share (1H up ¥6, 2H flat vs. FY2015) (1H, 2H flat vs. FY2016E as of May 2016)

Sales, OP renewed the highest results for 1H

（Sales） ◆Down ¥1.5 billion (＋) Agrochemicals, Pharmaceuticals (－) Chemicals, Performance Materials, Trading

（OP） ◆Up ¥1.4 billion (＋) Performance Materials, Agrochemicals, Pharmaceuticals (－) Chemicals, Trading （Ordinary Income） ◆Up ¥0.9 billion （Net Income） ◆Up ¥0.4 billion （EPS） ◆Up ¥2.44

＜Shareholders Return＞

(Share Repurchase) ◆ ¥5.0 billion, 2 million shares completed in August 2016 (Cancelled 1 million shares in May 2016, 1 million shares in August 2016)

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1HFY2015

1HFY2016

Change

Non-Operating Income 1.57 0.89 -0.68Interest income, dividend income 0.25 0.30 +0.05Share of profit of entities accounted for using equity method 0.45 0.15 -0.30Foreign exchange gains 0.13 0.00 -0.13Others 0.74 0.44 -0.30Non-Operating Expenses 0.71 1.41 +0.70Interest expense 0.11 0.09 -0.02Foreign exchange losses 0.00 0.63 +0.63Loss on disposal of fixed assets 0.13 0.26 +0.13Others 0.47 0.43 -0.04

Extraordinary Income - - -Extraordinary Loss - - -

Comprehensive Income 9.56 7.44 -2.12Net income 11.15 10.60 -0.55Non-controlling interests 0.10 0.07 -0.03Unrealized gains or losses on investment securities -1.24 -2.32 -1.08Foreign currency translation adjustments -0.41 -0.87 -0.46 Remeasurements of defined benefit plans -0.04 -0.04 +0.00

1H FY2016 Non-Operating Income/Expenses, Extraordinary Income/Loss, Comprehensive Income (¥billion)

6

(¥billion) 1H FY2016 Cash Flow 1H

FY20151H

FY2016CF from operating activities 27.6 29.4Profit before income tax 15.1 14.2Depreciation & amortization 4.4 4.1Tax -4.0 -4.9Working capital, others 12.1 16.0CF from investing activities -4.7 -4.5Purchase of PPE -4.3 -5.3Others -0.4 0.8CF from financing activities -27.3 -26.6Dividends paid -3.5 -4.0Borrowings -17.7 -17.5Share repurchase -6.0 -5.0Others -0.1 -0.1Effect of FX rate changes on cash & cash equivalents -0.2 -0.3Change in cash & cash equivalents -4.6 -2.0Cash & cash equivalents at end of period 26.9 33.3

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2015/9 2016/3 2016/9 Change 2015/9 2016/3 2016/9 Change(A) (B) (B) - (A) (A) (B) (B) - (A)

Current assets 115.9 142.2 120.4 -21.8 Liabilities 54.7 71.3 49.7 -21.6

Cash 26.9 35.3 33.3 -2.0 Accounts payable 13.6 15.4 13.1 -2.3Accountsreceivable 43.4 57.6 43.6 -14.0 Borrowings 17.4 33.1 15.5 -17.6

Inventories 38.1 38.5 36.8 -1.7 Others 23.7 22.8 21.1 -1.7

Others 7.5 10.8 6.7 -4.1 Net assets 150.8 156.9 155.0 -1.9

Fixed assets 89.6 86.0 84.3 -1.7 Shareholders'equity 138.8 144.2 145.6 +1.4

Total PPE 47.0 47.5 48.6 +1.1 Unrealized gains or losses oninv estment securities 9.4 10.5 8.2 -2.3

Intangible assets 5.0 0.9 1.5 +0.6 Foreign currencytranslation adjustments 0.5 0.2 -0.7 -0.9

Investmentsecurities 33.5 33.3 28.7 -4.6 Non-controlling

interests 1.5 1.5 1.5 +0.0

Others 4.1 4.3 5.5 +1.2 Remeasurements ofdefined benefit plans 0.6 0.5 0.4 -0.1

Total assets 205.5 228.2 204.7 -23.5 Total liabilities &Net assets 205.5 228.2 204.7 -23.5

・Equity Ratio 72.7% 68.1% 75.0%・D/E Ratio (1) -6.9% -1.6% -12.2%

(1)D/E Ratio = (Borrowings - Cash) / Shareholders' equity

・Change in shareholders' equity +1.4 =　Net Income 10.6 - Dividend and others 9.2

Balance Sheets as of September 30, 2016 (¥billion)

8

(Blank)

9

FY2016 Outlook (¥billion)

Change(%)

1H 2H Total 1HActual

2H Total 1HActual

2H Total Total 1H 2H Total

Sales 83.7 93.2 176.9 84.5 96.0 180.5 +0.8 +2.8 +3.6 +2% 86.0 101.5 187.5

Operating Profit 14.3 14.3 28.6 14.7 15.2 29.9 +0.4 +0.9 +1.3 +5% 13.3 16.4 29.7

Non-Operating Income/Expenses 0.8 0.1 0.9 -0.5 0.3 -0.2 -1.3 +0.2 -1.1 -122% 0.0 0.7 0.7

Ordinary Income 15.1 14.4 29.5 14.2 15.5 29.7 -0.9 +1.1 +0.2 +1% 13.3 17.1 30.4

Extraordinary Income/Loss (1) 0.0 -1.2 -1.2 0.0 0.0 0.0 +0.0 +1.2 +1.2 - 0.0 0.0 0.0

Net Income (2) 11.1 11.3 22.4 10.6 11.9 22.5 -0.5 +0.6 +0.1 +1% 10.2 12.8 23.0

EBITDA (3) 18.7 19.6 38.3 18.8 20.8 39.6 +0.1 +1.2 +1.3 +3% 17.6 22.1 39.7

EPS (\ /share) (4) 71.21 72.16 143.37 69.00 77.88 146.88 -2.21 +5.72 +3.51 +2% 66.56 83.80 150.36

Dividend (\ /share) 18 26 44 24 26 50 +6 +0 +6 24 26 50

Total amount of Dividend (4) 2.8 4.0 6.8 3.7 3.9 7.6 +0.9 -0.1 +0.8 3.7 3.9 7.6

OP Margin 17.0% 15.4% 16.2% 17.4% 15.8% 16.6% +0.4% +0.4% +0.4% 15.5% 16.2% 15.8%

ROE (4) - - 14.6% - - 14.2% -0.4% - - 14.3%

FX Rate (\ /$) 122 118 105 105 115 115

Naphtha (\ /kl) 48,000 37,700 31,400 34,400 35,400 35,400

Comprehensive Income 9.6 11.9 21.5 7.4

FY2015 Actual FY2016 Outlookas of Nov. 2016

FY2016 Outlookas of May 2016

Change

Record

Record

Record

Record

(1) FY2015 Actual: Gain on sales of investment securities+3.0, Impairment loss(TMAT*) -3.9, Provision for loss on business of an affiliated company (Ammonia Terminal Company, ltd**) -0.3 (2) Net income = Profit Attributable to Owners of Parent (3) EBITDA = Operating Profit + Depreciation (4) FY2016 Outlook including effects of FY2016 share repurchase program ended on August, 2016

TMAT* (consolidated subsidiary) =Thin Materials AG(Germany) 100% subsidiary of Nissan Chem Temporary bonding materials for 3D packaging for semis

Ammonia Terminal Company, ltd** (affiliated company) =Joint venture company owned by Sumitomo Chem(40%), Showa Denko(30%) and Nissan Chem(30%)

10

（Sales） ◆Up ¥2.8 billion (+3%) (＋) Performance Materials, Agrochemicals, Trading (±) Chemicals (－) Pharmaceuticals

（OP） ◆Up ¥0.9 billion (+6%) (＋) Agrochemicals, Trading (－) Chemicals, Performance Materials, Pharmaceuticals （Non-Operating Income and Expenses） ◆Up ¥0.2 billion

（Ordinary Income） ◆Up ¥1.1 billion (+8%)

（Net Income） ◆Up ¥0.6 billion (+6%)

（EPS） ◆Up ¥5.72 (+7.9%)

＜vs. 2H FY2015＞

＜vs. 2H FY2016 Outlook as of May 2016＞（Sales） ◆Down ¥5.5 billion (－) Chemicals, Performance Materials, Agrochemicals, Pharmaceuticals, Trading （OP） ◆Down ¥1.2 billion (＋) Agrochemicals, Trading (－) Chemicals, Performance Materials, Pharmaceuticals （Ordinary Income） ◆Down ¥1.6 billion （Net Income） ◆Down ¥0.9 billion （EPS） ◆Down ¥5.92

2H FY2016 Outlook

(Dividend) ＜Shareholders Return＞

◆ 1H ¥24/share, 2H ¥26/share (1H up ¥6, 2H flat vs. FY2015) (1H, 2H flat vs. FY2016E as of May 2016)

11

（Sales） ◆Up ¥3.6 billion (+2%) (＋) Performance Materials, Agrochemicals, Trading (－) Chemicals, Pharmaceuticals

（OP） ◆Up ¥1.3 billion (+5%) (＋) Agrochemicals, Trading (－) Chemicals, Performance Materials, Pharmaceuticals （Non-Operating Income and Expenses） ◆Down ¥1.1 billion

（Ordinary Income） ◆Up ¥0.2 billion (+1%) （Net Income） ◆Up ¥0.1 billion (+1%)

（EPS） ◆Up ¥3.51 (+2%)

（ROE） ◆14.2% (-0.4%)

＜vs. FY2015＞

＜vs. FY2016 Outlook as of May 2016＞（Sales） ◆Down ¥7.0 billion (＋) Agrochemicals, Pharmaceuticals (－) Chemicals, Performance Materials, Trading （OP） ◆Up ¥0.2 billion (＋) Agrochemicals (±) Performance Materials, Pharmaceuticals, Trading (－) Chemicals （Ordinary Income） ◆Down ¥0.7 billion （Net Income） ◆Down ¥0.5 billion （EPS） ◆Down ¥3.48

（ROE） ◆14.2% (-0.1%)

Full Year FY2016 Outlook

Sales, OP, Ordinary Income, Net Income expected to renew the highest results

＜Shareholders Return＞

（Dividend） ◆1H ¥24/share, 2H ¥26/share (1H up ¥6, 2H flat vs. FY2015) (1H, 2H flat vs. FY2016E as of May 2016) （Share Repurchase） ◆¥5.0 billion, 2 million shares completed in August 2016 (Cancelled 1 million shares in May 2016, 1 million shares in August 2016) （Total Shareholders Return Target） ◆ 70% (56% based on the above Share Repurchase and Dividend)

FY2015Actual

FY2016Outlook as

of Nov. 2016Change

FY2016Outlook as

of May. 2016

Non-Operating Income 2.48 1.97 -0.51 1.84Interest income, dividend income 0.60 0.63 +0.03 0.59Share of profit of entities accounted for using equity method 0.86 0.60 -0.26 0.70Foreign exchange gains 0.00 0.00 +0.00 0.00Others 1.02 0.74 -0.28 0.55Non-Operating Expenses 1.56 2.21 +0.65 1.18Interest expense 0.19 0.16 -0.03 0.20Loss on disposal of fixed assets 0.32 0.73 +0.41 0.64Loss on foreign exchange 0.17 0.63 +0.46 0.00Others 0.88 0.69 -0.19 0.34

Extraordinary Income 3.08 0.00 -3.08 0.00Extraordinary Loss 4.25 0.00 -4.25 0.00

FY2016 Outlook Non-Operating Income/Expenses, Extraordinary Income/Loss

(¥billion)

12

13

(¥billion) FY2016 Cash Flow Outlook FY2015Actual

FY2016 Outlookas of Nov. 2016


CF from operating activities 30.0 31.4 30.9Profit before income tax 28.4 29.7 30.3Gain on sales of investment securities -3.0 -0.2 0.0Impairment loss 3.9 0.0 0.0Provision for loss on business of associates 0.3 0.0 0.0Depreciation & Amortization 9.7 9.7 10.0Tax -7.4 -8.9 -9.2Working capital, others -1.9 1.1 -0.2CF from investing activities -8.4 -16.6 -14.4Purchase of PPE -9.1 -17.6 -17.1Purchase and sales of investment securities 1.9 2.7 2.7Others -1.2 -1.7 0.0CF from financing activities -17.3 -14.8 -14.7Dividends paid -6.3 -7.7 -7.7Borrowings -1.9 -2.0 -2.0Share repurchase -9.0 -5.0 -5.0Others -0.1 -0.1 0.0Effect of FX rate changes on cash & cash equivalents -0.3 0.0 0.0Change in cash & cash equivalents 4.0 0.0 1.8Cash & cash equivalents at end of period 35.3 35.3 37.1

14

(Blank)

15


2H Total 1HActual

2H Total 1HActual

2H Total 1H 2H Total

Chem 16.7 17.6 34.3 16.5 17.6 34.1 -0.2 +0.0 -0.2 -1% -0% -1% 17.5 17.9 35.4

Fine 5.5 5.1 10.6 5.3 5.0 10.3 -0.2 -0.1 -0.3 -3% -3% -3% 5.7 5.2 10.9

Basic 11.2 12.5 23.7 11.2 12.6 23.8 +0.0 +0.1 +0.1 -0% +1% +0% 11.8 12.7 24.5

26.0 25.8 51.8 25.5 27.0 52.5 -0.5 +1.2 +0.7 -2% +5% +1% 26.6 28.7 55.3

Agro 21.1 26.4 47.5 24.0 28.2 52.2 +2.9 +1.8 +4.7 +13% +7% +10% 22.3 29.8 52.1

Pharma 3.7 5.0 8.7 3.7 3.9 7.6 +0.0 -1.1 -1.1 -1% -21% -12% 3.4 4.0 7.4

Trading 27.5 28.1 55.6 27.6 30.6 58.2 +0.1 +2.5 +2.6 +0% +9% +5% 28.8 31.2 60.0

Others 8.9 12.0 20.9 8.6 14.8 23.4 -0.3 +2.8 +2.5 -3% +23% +12% 8.8 14.4 23.2

-20.2 -21.7 -41.9 -21.4 -26.1 -47.5 -1.2 -4.4 -5.6 - - - -21.4 -24.5 -45.9

Total 83.7 93.2 176.9 84.5 96.0 180.5 +0.8 +2.8 +3.6 +1% +3% +2% 86.0 101.5 187.5

Adjust-ment

Change (%)

Perfor-mance

FY2015 ActualFY2016 Outlookas of Nov. 2016

FY2016 Outlookas of May 2016Change

(¥billion)

FY2016 Sales Outlook by Segment(1)

(1) Including inter-segment sales/transfers

16


2H Total 1HActual

2H Total 1HActual

2H Total 1H 2H Total

Chem 1.4 2.5 3.9 1.3 2.4 3.7 -0.1 -0.1 -0.2 -6% -6% -6% 1.6 3.3 4.9

6.3 5.7 12.0 6.2 5.5 11.7 -0.1 -0.2 -0.3 -3% -3% -3% 5.8 5.9 11.7

Agro 6.2 4.6 10.8 6.9 5.9 12.8 +0.7 +1.3 +2.0 +10% +29% +18% 5.8 5.5 11.3

Pharma 0.6 1.4 2.0 0.6 0.8 1.4 +0.0 -0.6 -0.6 +0% -44% -30% 0.4 1.0 1.4

Trading 0.9 0.9 1.8 0.8 1.1 1.9 -0.1 +0.2 +0.1 -2% +11% +5% 0.9 1.0 1.9

Others 0.0 0.5 0.5 0.0 0.7 0.7 +0.0 +0.2 +0.2 -143% +36% +47% 0.0 0.8 0.8

-1.1 -1.3 -2.4 -1.1 -1.2 -2.3 +0.0 +0.1 +0.1 - - - -1.2 -1.1 -2.3

Total 14.3 14.3 28.6 14.7 15.2 29.9 +0.4 +0.9 +1.3 +3% +6% +5% 13.3 16.4 29.7

Adjust-ment

Change (%)

Perfor-mance

FY2015 Actual FY2016 Outlookas of Nov. 2016


Change

(¥billion)

FY2016 OP Outlook by Segment

naphtha

sulfur

urea

melamine melamine cyanurate

isocyanuric acid environmental

related products nitric acid TEPIC

high purity sulfuric acid

AdBlue ammonia

high purity ammonia

chlorine

sulfuric acid

(agent used for cleaning Semicon)

(agent used for sterilizing, disinfectant for swimming pool and water purification tanks)

(epoxy compound for LED sealants, solder resist, painting)

(flame retardant) (agent used for gallium nitride； LED materials)

(solution of urea in demineralised water for diesel trucks)

(adhesive agent for particle board)

(adhesive agent)

◆ Core products of Basic Chemicals : Ammonia related products and sulfuric acid related products ◆ FY2015 ammonia domestic production capacity share 11%, high percentage of self-consumption of ammonia

Purchased materials

Chemicals – (A) Flow Chart of Selected Basic and Fine Chemicals Products

HI-LITE environmental

related products

= = Basic Chemicals =

Fine Chemicals

17

Changed to

in August 2016

natural gas

Chemicals – (B) 1H FY2016 Sales Distribution

Total segment

Sales ¥16.5 billion ● Fine Chemicals 32% ● Basic Chemicals 68%

Total segment

Sales ¥16.5 billion

● TEPIC ● Environmental related products ● Others

Basic Chemicals Sales ¥11.2 billion

Fine Chemicals Sales ¥5.3 billion

Main Products 73% Others 27%



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● Melamine ● High purity sulfuric acid ● Urea/AdBlue ● Others

< Main Products > ● Melamine ● TEPIC ● Environmental related products ● High purity sulfuric acid ● Urea/AdBlue ● Others

19

◆Sales (FY2012=100)

(1) Marginal Profit ：Sales－Variable Cost

■Growing Products TEPIC FINEOXOCOL AdBlue High purity ammonia Melamine cyanurate etc. ■Matured Products Melamine Ammonia Urea Nitric acid etc.

◆Marginal Profit (1) (FY2012=100)

Chemicals – (C) Growing Products

Growing Products’ % of Total Sales 21 23 26 26 26

100 113

126 126 125

100 100 93 94 94

50

100

150

FY2012 FY2013 FY2014 FY2015 FY2016 E

100 116

129 142 148

100 99 96 112

130

50

100

150

200

FY2012 FY2013 FY2014 FY2015 FY2016 E

FY2012 FY2013 FY2014 FY2015

TEPIC 100 120AdBlue 100 150 160

　[Number of Plants(1)] [ 2 ] [ 4 ] [ 5 ] 　　　

High purityammonia

100 250

Ammonia 100 80

Nitric acid 100 80Decreasing

GrowingProducts

MaturedProducts

Increasing

20

◆Production Capacity (FY2012 Production Capacity ＝ 100)

◆Completed Cost Saving Investments at Toyama Ammonia Related Plants

Construction Cost： ¥0.5 billion Cost Savings： ¥0.2-0.3billion/year Contents： Utility and manpower savings

◆ Ammonia Feedstock Change Project See Page D-2

(1) Including subcontractors

Chemicals – (D-1) Production Capacity

21

Chemicals – (D-2) Ammonia Feedstock Change Project

◆Project: Change of feedstock for ammonia production at Toyama Plant from naphtha to natural gas ◆Purpose: To pursue more stable profitability from ammonia and its derivative products by using natural gas ◆Construction Cost: ¥ 1.09 billion ◆Completion Period: Completed in August 2016 as scheduled ◆Extraordinary Loss: Extraordinary loss of ¥ 704 million incurred in 3Q FY2014 (fiscal year ending in March 2015) as cost for dismantling the existing naphtha pipeline after completion of the project

Kanazawa City Toyama City

Ishikawa pref.

Natural Gas Pipeline NCI Toyama Plant

Sea of Japan

Niigata pref.

Toyama pref.

Naoetsu LNG Terminal of INPEX

Itoigawa City

22

Chemicals – (D-3) Ammonia Feedstock Change Project

Natural Gas Pipeline NCI Toyama Plant

23

1H 2H Total 1H 2H Total 1HActual 2H Total

TotalSubsegment

+4% -3% +1% +4% +3% +3% -3% -3% -3%

TEPIC

◆Epoxy compound for :(A) electronic materials (solder resist, LED sealant),(B) general applications such as powder coating agent for paint◆World largest producer

-8% -17% -12% +9% +9% +9% -9% +2% -4%

Env ironmentalrelated

products

◆HI-LITE : made from chlorinated isocyanuric acid, used for sterilizing, disinfectant for swimming pool as well as water purification tank

+18% +9% +14% +0% +0% +4% +2% +5% +3%

Main ProductsFY2016 Outlookas of May 2016

Sales YOY Change

FY2016 Outlookas of Nov . 2016

FY2015 Actual

Chemicals – (E) Fine Chemicals Subsegment

Two products account for 72% of total consolidated subsegment sales (FY2015)

1H FY2016 Sales Review <vs. 1H FY2015> ◆ TEPIC : Sales for general applications down due to strong yen, sales for electronic materials up ◆ Environmental related products : Domestic sales up, export sales down

<vs. 1H FY2016 Outlook as of May 2016> ◆ TEPIC : Both applications below target ◆ Environmental related products : Domestic sales above target, export sales below target

2H FY2016 Sales Outlook <vs. 2H FY2015> ◆ TEPIC : Sales for general applications up, sales for electronic materials down ◆ Environmental related products : Domestic sales up, export sales flat

<vs. 2H FY2016 Outlook as of May 2016> ◆ TEPIC : Sales for general applications below target, sales for electronic materials in line with target ◆ Environmental related products : Domestic and export sales below target

24

Chemicals – (F) Basic Chemicals Subsegment

Three products account for 39% of total consolidated subsegment sales(FY2015)

1H FY2016 Sales Review <vs. 1H FY2015> ◆Melamine : Domestic sales down, export sales up ◆Urea/AdBlue : Urea flat, AdBlue up ◆High purity sulfuric acid : Flat

<vs. 1H FY2016 Outlook as of May 2016> ◆Melamine : Domestic sales below target, export sales above target ◆Urea/AdBlue : Both urea and AdBlue below target ◆High purity sulfuric acid : Below target due to lower consumption by domestic semis customers 2H FY2016 Sales Outlook <vs. 2H FY2015> ◆Melamine : Both domestic and export sales down ◆Urea/AdBlue : Urea down, AdBlue up ◆High purity sulfuric acid : Up

<vs. 2H FY2016 Outlook as of May 2016> ◆Melamine : Domestic sales below target, export sales above target ◆Urea/AdBlue : Both urea and AdBlue in line with target ◆High purity sulfuric acid : Below target

1H 2H Total 1H 2H Total 1HActual

2H Total

TotalSubsegment

-2% +2% +0% +5% +2% +3% -0% +1% +0%

Melamine ◆Mainly used as adhesiv e agent for particle board, medium density fiberboard, plywood

+11% +15% +13% -1% -11% -6% +1% -7% -3%

Urea/AdBlue◆Urea: mainly used for urea formaldehyde resin, adhesiv e agent◆AdBlue: solution of urea in demineralised water for　 diesel trucks to reduce Nox

+7% +13% +10% +11% +2% +7% +2% +1% +1%

High puritysulfuric

acid

◆Used to clean semiconductors◆Largest in domestic market

-12% -3% -8% +5% +8% +7% -1% +4% +2%

Main ProductsFY2016 Outlookas of May 2016FY2015 Actual

Sales YOY Change


25


2H Total 1HActual

2H Total 1HActual

2H Total

16.7 17.6 34.3 17.5 17.9 35.4 16.5 17.6 34.1 -0.2 +0.0 -0.2 -1% -0% -1%Fine 5.5 5.1 10.6 5.7 5.3 10.9 5.3 5.0 10.3 -0.2 -0.1 -0.3 -3% -3% -3%Basic 11.2 12.5 23.7 11.8 12.6 24.5 11.2 12.6 23.8 +0.0 +0.1 +0.1 -0% +1% +0%

1.4 2.5 3.9 1.6 3.3 4.9 1.3 2.4 3.7 -0.1 -0.1 -0.2 -6% -6% -6%

Change(%)(B)－(A)

Change(B)－(A)

OP

Sales

FY2015 Actual (A) FY2016 Outlookas of May 2016

FY2016 Outlook(B)as of Nov. 2016

(¥billion) Chemicals – (G) Profit Overview

1H FY2016 Review <vs. 1H FY2015>

<vs. 1H FY2016 Outlook as of May 2016>

2H FY2016 Outlook <vs. 2H FY2015>


(Fine Chemicals) ◆ Environmental related products sales up, TEPIC sales up ◆ Fuel cost down ◆ Sales down, OP up (Basic Chemicals) ◆ Sales of melamine down ◆ Sales of urea including AdBlue and high purity sulfuric acid up ◆ Sales up, OP down (Total Segment) ◆ Sales flat, OP down ¥0.1billion

(Fine Chemicals) ◆ Sales of environmental related products and TEPIC below target ◆ Strong yen ◆ Inventory adjustment cost up ◆ Sales below target, OP below target (Basic Chemicals) ◆ Sales of melamine above target ◆ Sales of urea including AdBlue in line with target ◆ Sales of high purity sulfuric below target ◆ Strong yen ◆ Inventory adjustment cost up ◆ Sales below target, OP below target (Total Segment) ◆ Sales down ¥0.3billion, OP down ¥0.9billion

(Fine Chemicals) ◆ Environmental related products sales up, TEPIC sales down ◆ Inventory adjustment cost up ◆ Sales down, OP down (Basic Chemicals) ◆ Sales of melamine and urea including AdBlue up, high purity sulfuric acid down ◆ Fuel cost down ◆ Sales flat, OP up (Total Segment) ◆ Sales down ¥0.2billion, OP down ¥0.1billion

(Fine Chemicals) ◆ Environmental related products sales above target ◆ TEPIC sales below target ◆ Strong yen ◆ Sales below target, OP below target (Basic Chemicals) ◆ Sales of melamine above target, sales of urea including AdBlue and high purity sulfuric acid below target ◆ Strong yen ◆ Fuel cost lower than expectations ◆ Sales below target, OP below target (Total Segment) ◆ Sales down ¥1.0billion, OP down ¥0.3billion

26

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27


+18% +9% +13% +3% +7% +5% +4% +2% +3%+1% +15% +7% +80% +189% +136% -3% +35% +16%

+18% +9% +13% +4% +9% +7% +4% +3% +3%(1)　NHC(protective coating for touch panels), 3D TV materials, Elsource (hole injection layer materials for OLED),etc

Total SUNEVER

Main Products

Total Display MaterialsOther Display Materials (1)

FY2016 Outlookas of May 2016FY2015 Actual

Sales YOY Change


Performance Materials – (A) Display Materials 1H FY2016 Sales Review <vs. 1H FY2015> ◆ SUNEVER up 4% ◆ IPS/FFS up, TN and VA down ◆Photo-alignment IPS SUNEVER sales increasing substantially <vs. 1H FY2016 Outlook as of May 2016> ◆ SUNEVER above target ◆ IPS/FFS above target, TN and VA below target 2H FY2016 Sales Outlook <vs. 2H FY2015> ◆ SUNEVER up +2% ◆ IPS/FFS and VA up, TN down ◆ Photo-alignment IPS SUNEVER sales increasing substantially <vs. 2H FY2016 Outlook as of May 2016> ◆ SUNEVER below target ◆ TN, VA and IPS/FFS below target

◆ Purchased patents and expertise of OLED hole injection and hole transport materials from Solvay (September 2016)


2H Total

KrF +1% -7% -3% -9% +4% -3% -8% +3% -3%

ArF +3% +5% +4% +7% +15% +11% -1% +6% +2%

+2% -0% +1% +0% +11% +6% -3% +5% +1%

-23% -22% -23% +6% +58% +31% -15% +36% +10%

-4% -5% -5% +2% +20% +11% -6% +11% +3%(1) Multi layer process materials (OptiStack®), microlens materials, etc

Total Semis Materials

Other Semis Materials (1)

Main Products

Bottom anti-reflective coating (ARC®) Total


Sales YOY Change

FY2015 Actual FY2016 Outlookas of May 2016

28

1H FY2016 Sales Review <vs. 1H FY2015> ◆ Total Semis Materials sales down -6% KrF, ArF and other semis materials down <vs. 1H FY2016 Outlook as of May 2016> ◆ Total Semis Materials sales below target KrF above target, ArF and other semis materials below target 2H FY2016 Sales Outlook <vs. 2H FY2015> ◆ Total Semis Materials sales up +11% KrF, ArF and other semis materials up <vs. 2H FY2016 Outlook as of May 2016> ◆ Total Semis Materials sales below target KrF, ArF and other semis materials below target

Performance Materials – (B) Semis Materials

◆ Semiconductor capex plan to capture long-term future business: Main capex (approval basis): FY2014 Analyzing and evaluation R&D equipment (¥1.1 billion) FY2015 Product development facilities(¥2.8 billion), Analyzing and evaluation R&D equipment (¥0.8 billion), Production capacity expansion (¥0.8 billion), NCK (¥0.7 billion) FY2016 NCK production capacity expansion (¥3.2 billion), Analyzing and evaluation R&D equipment (¥1.0 billion)

Organo sol

Alumina sol

SUNCOLLOID

Celnax

colloidal silica (water dispersed

silica sol)

organic solvent dispersed silica sol

water dispersed alumina hydrate sol

zinc antimonate sol

High performance inorganic colloidal materials

SNOWTEX

SNOWTEX Characteristics

High transparency High hydrophilicity High heat resistance High electro-conductivity High hardness Control refractive index Increase friction Increase bonding Increase viscosity

SNOWTEX Key functions

Coating

Performance Materials – (C-1) Inorganic Materials

Binding Polishing

< Application Examples >

•Polishing silicon wafer, aluminum/glass hard discs

•Coating for special steel sheet, plastic optical lenses, metals, plastic films

•Binding catalyst carrier, ceramics

<

< >

>

29

high-refractive index metal oxide sol

30


SNOWTEX

◆Mainly Used for :(A) polishing materials (silicon wafer, aluminum and glass hard disk),(B) non-polishing materials ( NOx reduction catalyst, automobile catalyst, special steel sheet)

+4% +1% +2% -5% -3% -4% -4% +2% -1%

Organosol

◆Used for : hard coating materials, electronic information materials

+18% -4% +6% -11% -8% -10% -7% -1% -4%

Sales YOY Change (1)


FY2015 Actual FY2016 Outlookas of May 2016Main Products

Performance Materials – (C-2) SNOWTEX, Organo sol 1H FY2016 Sales Review <vs. 1H FY2015> ◆ SNOWTEX : Down (sales for polishing materials down, sales for non-polishing materials up) ◆ Organo sol : Down

<vs. 1H FY2016 Outlook as of May 2016> ◆ SNOWTEX : Above target (sales for polishing materials and non-polishing materials above target) ◆ Organo sol : Above target

2H FY2016 Sales Outlook <vs. 2H FY2015> ◆ SNOWTEX : Up (sales for polishing materials flat, sales for non-polishing materials up) ◆ Organo sol : Flat

<vs. 2H FY2016 Outlook as of May 2016> ◆ SNOWTEX : Above target (sales for polishing materials and non-polishing materials above target) ◆ Organo sol : Above target

(1) Non-consolidated basis

31

1H FY2016 Review


2H FY2016 Outlook <vs. 2H FY2015>


◆ SUNEVER sales up (IPS/FFS and VA up, TN down) ◆ Total Semis Materials sales up (KrF, ArF and other semis materials up) ◆ Inorganic Materials sales up (SNOWTEX up, Organo sol down) ◆ Fixed cost up ¥1.0billion ◆ Sales up ¥1.2billion, OP down ¥0.2billion

◆ SUNEVER sales below target (TN, VA and IPS/FFS below target) ◆ Total Semis Materials sales below target (KrF, ArF and other semis materials below target) ◆ Inorganic Materials sales below target (SNOWTEX and Organo sol above target) ◆ Fixed cost down ¥0.1billion ◆ Sales down ¥1.7billion, OP down ¥0.4billion

Performance Materials – (D) Profit Overview (¥billion)


2H Total 1HActual

2H Total 1HActual

2H Total

26.0 25.8 51.8 26.6 28.7 55.3 25.5 27.0 52.5 -0.5 +1.2 +0.7 -2% +5% +1%

6.3 5.7 12.0 5.8 5.9 11.7 6.2 5.5 11.7 -0.1 -0.2 -0.3 -3% -3% -3%

Change(%)(B)－(A)

Change(B)－(A)

OP

Sales



<vs. 1H FY2015>

◆ SUNEVER sales up (IPS/FFS up, TN and VA down) ◆ Total Semis Materials sales down (KrF, ArF and other semis materials down) ◆ Inorganic Materials sales down (SNOWTEX and Organo sol down) ◆ Fixed cost up ¥0.4billion ◆ Sales down ¥0.5billion, OP down ¥0.1billion

◆ SUNEVER sales above target (IPS/FFS above target, TN and VA below target) ◆ Total Semis Materials sales below target (KrF above target, ArF and other semis materials below target) ◆ Inorganic Materials sales below target (SNOWTEX and Organo sol above target) ◆ Fixed cost down ¥0.4billion ◆ Sales down ¥1.1billion, OP up ¥0.4billion

32

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Main Products(in order of FY2015

sales amount)

FY2015/FY2014

FY2016E/FY2015

as of May 2016

FY2016E/FY2015

as of Nov. 2016

ROUNDUP herbicide

ALTAIR(NC-620) herbicide

TARGA herbicide

PERMIT herbicide

SIRIUS herbicide

PULSOR(THIFLUZAMIDE) fungicide

LEIMAY/ORACLE fungicide

STARMITE miticide

SANMITE insecticide

Non-consolidatedSales YOY Change

Agrochemicals – (A) Sales YOY Change (Before Discount)

33

YOY Change+15％～

+10～+15％+5～+10％+0～+5％-0～-5％-5～-10％-10～-15％-15％～

◆ Transforming from a stable profit sector into a high growth sector driven by ALTAIR (new paddy rice herbicide), ROUNDUP and FLURALANER ◆ Strengthening product portfolio by: in-house developed products, acquired products, licensed-in products ◆ Full reconstruction of Biological Research Laboratories for Agro and Pharma segments FY2010-2017 Total capex ¥6.4 billion (FY2015-2017 last phase ¥1.3 billion) ◆ Acquired 3% share of IHARABRÁS (leading agro company in Brazil) in September 2011 ◆ Established subsidiaries in China (April 2014) and Brazil (August 2016) for sales support and new product development ◆ Export sales account for 31% of FY2015 non-consolidated segment sales (Asia:30%, Europe/Africa:52%, North/Central/South America:18%) *Including Fluralaner

(products) ROUNDUP (herbicide, acquired domestic business from Monsanto) LEIMAY (fungicide, in-house) STARMITE (miticide, in-house) PULSOR (THIFLUZAMIDE) (fungicide, acquired from Dow) PREVATHON (insecticide, licensed from DuPont) AVH (herbicide, licensed from ZEN-NOH, Bayer and Hokko) ROUNDUP AL for general household shower-type herbicide market, growing sharply ALTAIR (paddy rice herbicide, in-house) launched in Korea in FY2011 and in Japan in FY2012 Shipment of fluralaner to MSD started in July as scheduled BRAVECTO launched in several countries in EU in April and in the USA in June by MSD EXIREL/PRYROSSO (CYAZYPYR) launched (insecticide, licensed from DuPont) BRAVECTO launched in Japan in July by Intervet K.K TREFANOCIDE (herbicide, acquired by Gowan from Dow, exclusive sales right in Japan transferred to NCI) ISOCLAST (SULFOXAFLOR) (insecticide, licensed from Dow) ISOPYRAZAM (fungicide, licensed from Syngenta) Insecticide (in-house) General fungicide (in-house)

(launch) FY2002 FY2008 FY2009 FY2010 FY2011-12 FY2013 FY2014 FY2015 FY2017-18 FY2019 FY2022

Agrochemicals – (B) Overview

34

MSD: MSD Animal Health, the global animal health business unit of Merck Intervet K.K: a Japanese subsidiary of MSD

Agrochemicals – (C) Fluralaner

◆Fluralaner Invented by NCI and supplied to MSD as the active pharmaceutical ingredient of BRAVECTO ◆BRAVECTO *Developed by MSD Animal Health *Veterinary medical product (chewable tablets) providing unique immediate and persistent tick and flea killing activity for dogs for 12 weeks, longer than currently available once-monthly commercialized products *Launched by MSD in Germany, Spain, Italy, France, the Netherlands and the United Kingdom in April 2014, and in the USA in June 2014 (at present, launched in about 70 countries) *Launched by Intervet K.K. in Japan in July 2015 *BRAVECTO Spot-On Solution for dogs and cats approved in EU in May and in USA in July *BRAVECTO Spot-On Solution for cats launched in EU in July 2016 and USA in October 2016

35

NCI's Strategy Distribution of the TotalDomestic Market

Strengthening product lines Fungicide + Insecticide 1% 1% 　・LEIMAY, STARMITE, PULSOR 11%Insecticide 14% 13% 　・New in-house developed products 29%Fungicide 12% 12% 　・New licensed-in products 22%Herbicide 71% 71% 　・New acquisitions 35%Plant growth regulator 2% 2% 2%Others 1% 1% Maintaining strong market positions 1%Total (3) 100% 100% 　・ALTAIR, ROUNDUP AL 100%

Distribution of NCINon-consolidated Sales

Oct 2014-Sept 2015FY2014 FY2015

Agrochemicals – (D) Non-consolidated Segment Sales (before discount)

(3) Excluding Fluralaner

(1) ROUNDUP for general household, launched in FY2010, accounting for 15% of FY2015 ROUNDUP sales (2) Including Fluralaner

36

FY2013Actual

FY2014Actual

Total Total 1H 2H Total 1H 2H Total 1HActual 2H Total

ROUNDUP -0% +17% +2% -3% -0% +6% +5% +5% +20% +7% +13%(ROUNDUP AL(1)) (+66%) (+59%) (+27%) (+62%) (+36%) (+11%) (-31%) (-1%) (+26%) (+4%) (+20%)

Others(2) +14% +13% +18% -2% +5% +7% +12% +10% +12% +6% +8%Total Segment +11% +14% +14% -2% +4% +7% +11% +9% +14% +6% +9%

FY2016 Outlookas of Nov . 2016FY2015 Actual


Non-consolidated Sales YOY Change

37

(¥billion)

Agrochemicals – (E) Profit Overview

1H FY 2016 Review <vs. 1H FY2015>


2H FY 2016 Outlook <vs. 2H FY2015>



2H Total 1HActual

2H Total 1HActual

2H Total

21.1 26.4 47.5 22.3 29.8 52.1 24.0 28.2 52.2 +2.9 +1.8 +4.7 +13% +7% +10%

6.2 4.6 10.8 5.8 5.5 11.3 6.9 5.9 12.8 +0.7 +1.3 +2.0 +10% +29% +18%

Change(%)(B)－(A)

Change(B)－(A)

OP

Sales



◆ Sales up : Fluralaner, ROUNDUP (ML, AL), ALTAIR, TREFANOCIDE, LEIMAY ◆ Sales down : TARGA (export), PERMIT (export), SIRIUS ◆ Fixed cost down ◆ Inventory adjustment cost up ¥0.5billion ◆ Sales up ¥1.8billion, OP up ¥1.3billion

◆ Sales above target : ALTAIR, ROUNDUP (AL), STARMITE (export) ◆ Sales below target : TARGA (export), Fluralaner, SIRIUS, PULSOR (export), ISOCLAST ◆ Fixed cost down ◆ Inventory adjustment cost up ¥0.2billion ◆ Sales down ¥1.6billion, OP up ¥0.4billion

◆ Sales up : Fluralaner, ROUNDUP (ML, AL), ALTAIR, TARGA(export), TREFANOCIDE ◆ Sales down : PERMIT (export), PULSOR (export), STARMITE, SIRIUS ◆ Fixed cost up ◆ Inventory adjustment cost up ¥0.4billion ◆ Sales up ¥2.9billion, OP up ¥0.7billion

◆ Sales above target : Fluralaner, ROUNDUP (ML, AL), ALTAIR ◆ Sales below target : PERMIT (export), PULSOR (export), SIRIUS, ISOCLAST ◆ Fixed cost down ◆ Inventory adjustment cost up ¥0.2billion ◆ Sales up ¥1.7billion, OP up ¥1.1billion

38

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< After Launch > < Before Launch >

◆ Unique ethical pharma business model without sales force

Pharmaceuticals – (A) NCI Business Model

NCI Major Pharma

License out

Upfront Payment, Development Milestone

Drug Discovery

Clinical Trial

NCI Major Pharma

End Market

API Shipment

Formulation, Marketing, Sales

API* Sales Revenues, Sales Milestone Royalty

API*: Active Pharmaceutical Ingredient

39

FY2015 Domestic Market Share(1)

Crestor 53% Lipitor 18% LIVALO 15% Mevalotin 8%

Pharmaceuticals – (B) LIVALO (Anti-Cholesterol Drug)

◆August 2013, domestic compound patent expired ◆April 2014, filed complaints against certain companies in USA which had submitted Abbreviated New Drug Application(ANDA) with FDA ◆Domestic market share 15% in FY2015 ◆FY2016 NHI drug price cut about -7～-9% ◆Full reconstruction of Biological Research Laboratories (FY2010-2017)

(1) Excluding generic

40

Domestic End Market Sales(NHI drug price basis, \billion) 52.6 34.5 29.7 - -

Domestic End Market Share (1) 21% 16% 15% - -

Our Domestic and Export API Sales (\billion) 10.2 6.9 5.8 4.7 5.1

Our Domestic and Export API Sales YOY Change -2% -32% -15% -19% -13%

(Our Domestic API Sales YOY Change) (-2%) (-46%) (-27%) (-37%) (-41%)

FY2014Actual

FY2016Outlookas of May

2016

FY2016Outlookas of Nov.

2016

FY2013Actual

FY2015Actual

Pharmaceuticals – (C) LIVALO World Wide Strategy

41

Region Country Launch Business Partner

Japan Sep 2003 Kowa

Korea Jul 2005 JW Pharmaceutical

Thailand Jan 2008 Biopharm Chemicals

China Jul 2009 Kowa (Shanghai) Pharma

Indonesia May 2012 Tanabe Indonesia

Taiwan Jun 2012 Taiwan Tanabe

North America USA Jun 2010 Kowa (KPA)

Latin America Mexico, Brazil,Colombia, Venezuela Feb 2012- Eli Lilly

EuropeSpain, Portugal,Ukraine,Greece,Switzerland

May 2011- Recordati

Middle and NearEast

Lebanon, Jordan, UAE,Kuwait, Saudi Arabia Mar 2011- Algorithm SAL

Asia

Selling in total 21 countries

Pharmaceuticals – (D) Pipeline

42

Product Mechanism of action Expected indications Development partners

NIP-022 ・Thrombopoietin (TPO)　 receptor activation ・Thrombocytopenia

・Terminated the license agreement with Ono in April 2014 ・Entered into the license agreement with Yakult in October 2015 ・Started Phase I clinical trials in Japan in July 2016

NT-702 ・Phosphodiesterase　(PDE)3 inhibition

・Intermittent claudication ・Asthma

・Terminated the license agreement with Taisho ・Under consideration regarding seeking new partners

NTC-801 ・Acetylcholine-activated　 K+ channel current (IKACh) inhibition

・Arrhythmia (Atrial fibrillation)

・Terminated the license agreement with Teijin and BMS in September 2015 ・Under consideration regarding seeking new partners

◆ Strategic Research Collaboration with Shionogi - Started in January 2016 for novel antifungal drug candidates ◆ Novel drug discovery research To create innovative medicines by using the strategic chemical library, the precise organic synthesis technology and the state-of-the-art evaluation technology; - In-house research : Focusing on cardiovascular disease and neurological disease as core therapeutic areas. - Collaborative research : Utilizing open innovation effectively (e.g. Shionogi)

　

　

　

◆ Custom manufacturing and process researching services for pharmaceutical ingredients and intermediates from pre-clinical to commercial production stages

◆ October 2013, Custom Chemicals shifted from Chemicals Segment to Pharma Segment to seek synergy of the two divisions (organic synthesis technology, R&D/manufacturing/quality control systems) ◆ Focusing on obtaining new contracts including high activity and high-valued added GE API products (Prostaglandin and vitamin D3, etc.)

Pharmaceuticals – (E) Custom Chemicals

43


-6% +68% +27% -5% +2% -1% +10% +3% +6%

FY2015 ActualFY2016 Outlookas of May 2016

Sales YOY Change


1H FY2016 Sales Review <vs. 1H FY2015> ◆ Up due to volume increase in existing products <vs. 1H FY2016 Outlook as of May 2016> ◆ Above target (existing products sales above target, high value-added generic API product sales above target) 2H FY2016 Sales Outlook <vs. 2H FY2015> ◆ Up (existing products sales up, a new contracts expected) <vs. 2H FY2016 Outlook as of May 2016> ◆ Above target (some shipments of the high value-added generic API product shifted to FY2017, a new contract expected)

44

Pharmaceuticals – (F) Profit Overview (¥billion)


2H Total 1HActual

2H Total 1HActual

2H Total

3.7 5.0 8.7 3.4 4.0 7.4 3.7 3.9 7.6 +0.0 -1.1 -1.1 -1% -21% -12%

0.6 1.4 2.0 0.4 1.0 1.4 0.6 0.8 1.4 +0.0 -0.6 -0.6 0% -44% -30%

Change(%)(B)－(A)

Change(B)－(A)

OP

Sales



1H FY 2016 Review <vs. 1H FY2015>


2H FY 2016 Outlook <vs. 2H FY2015>


◆ LIVALO sales down (domestic down due to GE, export up) ◆ Custom Chemicals sales up ◆ Absence of up-front payment on pipeline products ◆ Fixed cost down ◆ Sales down ¥1.1billion, OP down ¥0.6billion

◆ LIVALO sales above target (domestic sales above target due to shipments shifted from 1H, export above target) ◆ Custom Chemicals sales above target ◆ Absence of up-front payment on pipeline products ◆ Fixed cost up ◆ Sales down ¥0.1billion, OP down ¥0.2billion

◆ LIVALO sales down (domestic down due to GE, export up) ◆ Custom Chemicals sales up ◆ Fixed cost down ◆ Sales flat, OP flat

◆ LIVALO sales above target (domestic sales below target due to shipments shifted to 2H, export above target) ◆ Custom Chemicals sales above target ◆ Sales up ¥0.3billion, OP up ¥0.2billion

2012 2013 2014 2015 2016E 2012 2013 2014 2015 2016E 2012 2013 2014 2015 2016E % of Sales

Chem 0.9 1.2 1.4 2.3 2.1 1.6 1.4 1.4 1.4 1.6 0.4 0.4 0.5 0.5 0.5 1.4%Performance M. 3.1 4.3 5.2 5.4 9.4 3.7 3.2 3.6 5.2 5.2 6.5 6.3 6.7 7.4 8.3 15.0%Agro 2.5 1.3 1.8 1.3 2.6 1.9 2.0 1.8 1.4 1.4 3.0 3.5 3.5 3.9 3.6 6.9%Pharma 0.8 0.6 0.4 0.4 0.8 1.5 1.2 0.9 0.8 0.7 2.6 2.9 2.7 2.4 2.2 29.7%Trading 0.0 0.0 0.0 0.0 0.0 0.1 0.1 0.1 0.1 0.1 0.0 0.0 0.0 0.0 0.0 -Others 0.8 1.4 0.1 0.8 0.5 0.7 0.6 0.7 0.8 0.7 1.2 1.1 1.6 1.6 1.5 -Total 8.1 8.8 9.8 10.2 15.4 9.5 8.5 8.5 9.7 9.7 13.7 14.2 15.0 15.8 16.1

R&D expenses/Sales 8.9% 8.7% 8.7% 8.9% 8.9%

Depreciation (2)Capex (1) R&D expenses

Capex/Depreciation/R&D by Segment (¥billion)

(1) Capex Actual - Acceptance basis Outlook - Production commencement basis (2) Depreciation Method SUNEVER, ARC®, OptiStack® - 4 year declining balance method (50.0% of initial capex amount in the 1st year) Other products - 8 year declining balance method (25.0% of initial capex amount in the 1st year)

R&D Personnel (Sept. 2016) –A 430

Total Professionals (Sept. 2016) –B 1,090

A/B 39% ※Parent company only

45

※Round number

Chemical Research Lab.(Instruments) 0.8

Reconstruction ofBiological Research Lab.The fifth stage (Facilities)

1.3Semis(Product developmentfacilities)

2.8 NCK Semis (Productioncapacity expansion) 3.2

Electronic Materials Lab.(Instruments) 0.8

Semis(Analyzing and evaluation R&Dequipment)

1.1 Material Research Lab.(Instruments) 2.2 Chemicals

(Product development plant) 1.2

Reconstruction ofBiological Research Lab.The fourth stage (Facilities)

0.5 Ammonia Feedstock ChangeProject 1.1 Agro

(Formulation facilities) 1.2 Material Research Lab.(Instruments) 1.1

Electronic Materials Lab.(Instruments) 0.9 SUNEVER

(Raw materials products) 1.0Semis(Analyzing and evaluation R&Dequipment)

1.0

Quality improvement ofInorganic Materials products 0.7

Semis(Analyzing and evaluation R&Dequipment)

0.8 Chemical Research Lab.(Instruments) 0.6

Chemical Research Lab.(Instruments) 0.6 Semis (Production capacity

expansion) 0.8 Biological Research Lab.(Instruments) 0.3

NCK R&D Center(Instruments) 0.3 NCK Semis (Production

capacity expansion) 0.7 NCK SUNEVER (Productioncapacity expansion) 0.3

Custom Chemicals (Productioncapacity expansion) 0.4 NCK R&D Center

(Instruments) 0.2

TEPIC (Production capacityexpansion) 0.3

Biological Research Lab.(Instruments) 0.2

NCK R&D Center(Instruments) 0.2

FY2013 Actual FY2014 Actual FY2016 Outlook as of Nov. 2016FY2015 Actual

Main Capex Items (Approval Basis) (¥billion)

46

◆ Started share repurchase in 2006 ◆ Repurchased ¥50.5 billion, 33.7 million shares (18.0% of shares issued) in total from FY2006 to FY2016 ◆ Cancelled all repurchased shares

Shareholders Return FY2006 - 2016

(A) Share Repurchase to Enhance ROE

(B) Cash Management Policy Aiming to control cash balance around the level of = Minimum required level + 1/3 of annual scheduled long-term borrowings repayment + 1/3 of short-term borrowings outstanding + Contingent risk reserves

47

Fiscal year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 TotalShares purchased (thousand shares) 3,500 3,399 7,355 0 2,167 0 6,372 3,263 2,764 3,333 1,584 33,737Purchase costs (\billion) 4.7 5.0 8.0 0.0 2.8 0.0 5.0 5.0 6.0 9.0 5.0 50.5Shares cancelled (thousand shares) 3,000 3,635 7,000 0 3,000 0 6,000 4,000 3,000 2,000 2,000 33,635Shares issued at FY end (million shares) 185 181 174 174 171 171 165 161 158 156 154Treasury share at FY end (thousand shares) 1,367 1,233 1,660 1,709 885 886 1,258 522 287 1,621Dividend (\billion) 3.7 3.6 3.8 4.2 4.1 4.1 4.3 4.9 5.7 6.8Dividend (\ /Share) 20 20 22 24 24 24 26 30 36 44

Total payout ratio(dividend + share repurchase) (%)

60 56 118 32 53 37 67 59 64 71

Financial Strategy

◆ Repurchase plan announced on May 12, 2016 ・ Total number of shares repurchased :1.6 million shares ・ Total amount :¥ 5.0 billion ・ Period of repurchase :From May 13, 2016 to August 2, 2016

◆ Cancellation of shares ・ Total number of shares cancelled :1.0 million shares (May 10, 2016) ・ Total number of shares cancelled :1.0 million shares (August 31, 2016)

48

(Blank)

Mid-Term Business Plan Vista 2015 StageⅡ(FY2013-2015) FY2015 Financial Targets (Mid-Term Plan vs. Actual)(A)

(1) Former segmentation (2) Including inter-segment sales/transfers

(¥billion)

49

Mid-term Plan Actual Variance

FY2015 (A) FY2015 (B) (B)-(A)

Sales 180.0 176.9 -3.1

Operating Profit 26.0 28.6 +2.6

Ordinary Income 26.5 29.5 +3.0

Net Income 18.5 22.4 +3.9

EPS(\) 113.00 143.37 +30.37

FX Rate (\/$) 85 1H 122 2H 118

Naphtha (\/kl) 61,000 1H 48,000 2H 37,700

1. PL

Achieved

Achieved

Achieved

Achieved

Sales (2) OP Sales OP Sales OP

2015 (C) 2015 (D) 2015 (E) 2015 (F) (E) - (C) (F) - (D)

Chem 41.5 4.9 36.6 4.5 -4.9 -0.4

Performance M. 53.8 11.3 51.8 12.0 -2.0 +0.7

Agro 40.8 7.6 47.5 10.8 +6.7 +3.2

Pharma 7.9 3.5 6.4 1.4 -1.5 -2.1Trading,Others,Adjustment 36.0 -1.3 34.6 -0.1 -1.4 +1.2

Total 180.0 26.0 176.9 28.6 -3.1 +2.6

2. Segment (1)Mid-term Plan Actual Variance

(¥billion)

50

Mid-Term Business Plan Vista 2015 StageⅡ(FY2013-2015) FY2015 Sales Variance by Segment (Mid-Term Plan vs. Actual)(B)

SalesVariance２. (E) - (C)

FY2015 Actual＞ FY2015 Mid-term Plan

FY2015 Actual＜ FY2015 Mid-term Plan

Chem -4.9 Melamine(domestic, export)TEPIC(general), Custom Chemicals

Ammonia, High purity sulfuric acid,TEPIC(electronic, liquid),Urea/AdBlue, Fertilizer,Environmental related products

Performance M. -2.0 IPS/FFS, Photo-alignment IPS,ARC®(Bottom anti-reflective coating)

TN, VA, Other display materials,OptiStack® (Multi layer processmaterials),SNOWTEX(polishing, non-polishing),Organo sol, New products

Agro +6.7 Fluralaner, ROUNDUP, ALTAIR,Export LEIMAY, SIRIUS

Pharma -1.5 LIVALO(export) LIVALO(domestic)Up-front payment

Total -3.1

◆ Highest importance on ROE as well as OP margin

ROE : FY2015 Target 13.4% vs FY2015 Actual 14.6% OP margin : FY2015 Target 14.4% vs FY2015 Actual 16.2% ◆ Dividend payout ratio above 30% vs FY2015 Actual 30.7% － In addition, continue to repurchase shares timely ◆ R&D expenses/sales : FY2015 Target 9.6% vs FY2015 Actual 8.9%

51

Mid-Term Business Plan Vista 2015 StageⅡ(FY2013-2015) FY2015 Financial Indicators (Mid-Term Plan vs. Actual)(C)

achieved

achieved

achieved

52

(Blank)

1. PL 2015 2016 2018 2021Sales 176.9 187.5 217.0 250.0Operating Profit 28.6 29.7 35.0 40.0Ordinary Income 29.5 30.4 35.6 40.8Net Income 22.4 23.0 27.1 31.0OP Margin 16.2% 15.8% 16.1% 16.0%ROE 14.6% 14.3% above 14% above 14%Dividend Payout Ratio 30.7% 33.3% 40% 40%Total payout ratio 70.8% maintain 70% maintain 70% maintain 70%

FX Rate (\/$) 1H 　 122　2H　 118 FY2016 onward 115Naphtha (\/KL) (4) 1H 48,000　2H 37,700 1H 35,400　2H 35,400 FY2017 onward 51,100


Mid-Term Business Plan Vista 2021 (FY2016-2021) Financial Indicators (A)

53

2015 2016 2018 2021 2015 2016 2018 2021Chem 34.3 35.4 38.0 40.5 3.9 4.9 4.0 4.5

Performance M. 51.8 55.3 68.0 82.9 12.0 11.7 15.4 18.4

Agro 47.5 52.1 58.6 67.0 10.8 11.3 12.9 16.7

Pharma 8.7 7.4 8.1 8.3 2.0 1.4 2.0 2.4Trading,Others,Adjustment 34.6 37.3 44.3 51.3 -0.1 0.4 0.7 -2.0

Total 176.9 187.5 217.0 250.0 28.6 29.7 35.0 40.0

2. Segment(1)Sales Operating Profit

(¥billion)

(¥billion)

54

◆ OP Margin : Maintain above 15% (FY2015 Actual 16.2%) ◆ ROE : Maintain above 14% (FY2015 Actual 14.6%) ◆ Dividend Payout Ratio : Gradually increase to 40% in FY2018 (FY2015 Actual 30.7%) ◆ Total Payout Ratio : Maintain 70% (FY2015 Actual 70.8%) New indicator ◆ R&D expenses/sales : above 8% (FY2015 Actual 8.9%)

54

Mid-Term Business Plan Vista 2021 (FY2016-2021) Financial Indicators (B)

EPS (¥/share)

OP (¥billion)

Long-term Financial Performance Trend

55

46.21 59.77

72.73 75.43 85.15

57.26 74.00 75.94

64.52

83.74

102.11 113.99

143.37 146.88

15.7 17.3

21.7 20.8

24.8

17.4 19.2 19.8

15.5

19.5 22.2

25.3

28.6 29.9

0.0

10.0

20.0

30.0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 20152016E0

50

100

150

200

Long Term Financial Performance Trend (¥billion)

56

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016ESales 155.9 161.4 169.1 174.4 169.2 160.2 149.0 154.2 148.6 153.8 163.7 171.2 176.9 180.5

Operating Profit 15.7 17.3 21.7 20.8 24.8 17.4 19.2 19.8 15.5 19.5 22.2 25.3 28.6 29.9

Ordinary Income 14.6 17.4 21.3 21.2 24.4 16.9 19.2 19.4 15.9 20.5 23.7 26.4 29.5 29.7

Net Income 8.7 11.3 13.7 14.0 15.5 10.1 12.8 13.0 11.0 13.9 16.7 18.2 22.4 22.5EBITDA 26.1 26.9 31.6 30.5 34.5 27.6 30.1 30.2 25.9 29.0 30.8 33.8 38.3 39.6OP Margin 10.0% 10.7% 12.8% 12.0% 14.6% 10.9% 12.8% 12.9% 10.4% 12.7% 13.6% 14.8% 16.2% 16.6%ROE 13.4% 15.2% 16.1% 14.7% 15.6% 10.3% 12.6% 11.9% 9.5% 11.4% 12.7% 12.7% 14.6% 14.2%EPS(\ /share) 46.21 59.77 72.73 75.43 85.15 57.26 74.00 75.94 64.52 83.74 102.11 113.99 143.37 146.88Dividend(\ /share) 11 11 15 20 20 22 24 24 24 26 30 36 44 50Dividend Payout Ratio 23.8% 18.4% 20.6% 26.5% 23.5% 38.4% 32.4% 31.6% 37.2% 31.0% 29.4% 31.6% 30.7% 34.0%Share Repurchase ‐ ‐ ‐ 4.7 5.0 8.0 ‐ 2.8 - 5.0 5.0 6.0 9.0 5.0Total Assets 172.6 169.4 183.2 177.3 172.7 172.3 181.4 183.4 190.1 199.2 208.0 223.9 228.2 -Net Assets 69.2 78.5 92.0 98.1 100.1 95.7 106.5 112.4 119.6 126.7 137.8 151.3 156.9 -Cash 5.9 4.3 8.5 11.0 7.6 9.7 14.8 21.1 27.9 31.9 30.8 31.3 35.3 -Liabilities w ith Interest 57.4 44.6 41.5 32.4 34.4 45.5 42.1 39.9 38.9 38.1 36.1 35.1 33.1 -D/E Ratio 78.0% 53.7% 38.5% 23.2% 27.2% 37.1% 26.0% 16.9% 9.3% 5.0% 4.1% 2.7% -1.6% -Equity Ratio 40.1% 46.4% 50.2% 55.3% 58.0% 55.5% 58.7% 60.7% 62.4% 63.0% 65.7% 66.9% 68.1% -Capex 6.6 6.6 9.2 12.1 10.9 13.9 10.1 9.6 8.3 8.1 8.8 9.8 10.2 15.4Depreciation 10.4 9.6 9.9 9.7 9.7 10.2 11.0 10.4 10.5 9.5 8.5 8.5 9.7 9.7R&D Expenses 8.7 8.6 9.2 9.9 12.5 13.7 13.1 12.6 13.6 13.7 14.2 15.0 15.8 16.1R&D Expenses/Sales 5.6% 5.3% 5.4% 5.7% 7.4% 8.6% 8.8% 8.2% 9.2% 8.9% 8.7% 8.7% 8.9% 8.9%

FY2011-2Q FY2013 Quarterly Sales by Segment(1) (Former Segmentation)

(\billion)

1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total 1Q 2Q

Chem 9.4 9.2 9.0 9.3 36.9 9.1 8.8 8.9 9.8 36.6 9.5 9.1

Fine 3.0 2.9 2.4 2.6 10.9 2.9 2.7 2.4 3.2 11.2 2.9 3.1

Basic 6.4 6.3 6.6 6.7 26.0 6.2 6.1 6.5 6.6 25.4 6.6 6.0

8.7 8.3 8.6 8.4 34.0 9.5 9.3 9.5 9.1 37.4 10.3 10.3

Agro 7.1 5.4 3.7 17.6 33.8 8.3 5.1 4.6 17.4 35.4 9.9 6.1

Pharma 2.9 2.3 2.4 2.4 10.0 3.5 1.8 3.1 2.2 10.6 2.9 2.8

Trading 11.6 10.9 10.8 11.5 44.8 11.9 10.8 12.5 11.4 46.6 12.7 11.8

Others 4.6 4.7 4.3 6.4 20.0 3.9 6.3 4.6 6.4 21.2 4.6 5.1

Adjustment -7.7 -7.6 -7.3 -8.3 -30.9 -7.8 -9.4 -8.6 -8.2 -34.0 -9.7 -9.0

36.6 33.2 31.5 47.3 148.6 38.4 32.7 34.6 48.1 153.8 40.2 36.2Total

FY2013 ActualFY2011 Actual FY2012 Actual

PerformanceMaterials

57


FY2011-2Q FY2013 Quarterly OP by Segment (Former Segmentation)

(\billion)

1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total 1Q 2Q

Chem 1.0 -0.2 0.6 0.2 1.6 0.8 0.0 0.4 0.7 1.9 0.8 0.0

1.7 0.9 1.1 1.1 4.8 2.1 2.0 1.6 1.5 7.2 2.1 2.3

Agro 1.2 -0.4 -1.5 5.1 4.4 1.6 -0.3 -1.1 4.8 5.0 2.3 0.1

Pharma 1.4 1.2 1.0 1.0 4.6 1.9 0.7 1.6 1.0 5.2 1.6 1.5

Trading 0.4 0.3 0.3 0.3 1.3 0.4 0.3 0.4 0.3 1.4 0.4 0.3

Others 0.0 0.0 -0.1 0.4 0.3 -0.1 0.2 0.1 0.5 0.7 0.1 0.1

Adjustment -0.5 -0.4 -0.4 -0.2 -1.5 -0.4 -0.6 -0.5 -0.4 -1.9 -0.6 -0.4

5.2 1.4 1.0 7.9 15.5 6.3 2.3 2.5 8.4 19.5 6.7 3.9

14.3% 4.0% 3.4% 16.6% 10.4% 16.5% 6.8% 7.5% 17.4% 12.7% 16.7% 10.6%

FY2013 Actual

OP Margin

FY2011 Actual FY2012 Actual


Total

58

59

FY2013-2Q FY2016 Quarterly Sales by Segment (1) (New Segmentation)

(\billion)

1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total 1Q 2Q

Chem 9.3 8.6 8.8 8.8 35.5 8.5 8.2 9.1 8.5 34.3 8.7 8.0 9.0 8.6 34.3 8.5 8.0

Fine 2.7 2.6 2.3 2.3 9.9 2.7 2.6 2.8 2.5 10.6 3.0 2.5 2.5 2.6 10.6 2.8 2.5

Basic 6.6 6.0 6.5 6.5 25.6 5.8 5.6 6.3 6.0 23.7 5.7 5.5 6.5 6.0 23.7 5.7 5.5

10.3 10.3 11.1 11.1 42.8 11.8 12.4 13.0 12.2 49.4 13.0 13.0 13.6 12.2 51.8 12.6 12.9

Agro 9.9 6.1 5.5 17.6 39.1 12.3 6.2 5.7 21.5 45.7 13.6 7.5 5.0 21.4 47.5 14.5 9.5

Pharma 3.1 3.3 3.0 2.2 11.6 2.5 2.5 2.1 1.7 8.8 2.1 1.6 3.5 1.5 8.7 2.2 1.5

Trading 12.7 11.8 12.8 13.4 50.7 14.1 13.2 14.1 13.0 54.4 14.7 12.8 14.9 13.2 55.6 14.4 13.2

Others 4.6 5.1 4.9 6.8 21.4 3.8 4.7 4.6 7.8 20.9 4.1 4.8 4.7 7.3 20.9 4.0 4.6

Adjustment -9.7 -9.0 -8.9 -9.8 -37.4 -10.5 -9.8 -10.7 -11.3 -42.3 -11.0 -9.2 -11.0 -10.7 -41.9 -11.1 -10.3

40.2 36.2 37.2 50.1 163.7 42.5 37.4 37.9 53.4 171.2 45.2 38.5 39.7 53.5 176.9 45.1 39.4Total

FY2015 ActualFY2013 Actual




60

FY2013-2Q FY2016 Quarterly OP by Segment (New Segmentation)

(\billion)

1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total 1Q 2Q 3Q 4Q Total 1Q 2Q

Chem 1.0 -0.2 0.6 0.5 1.9 1.0 -0.6 0.6 0.9 1.9 1.5 -0.1 1.2 1.3 3.9 1.5 -0.2

2.1 2.3 2.3 2.1 8.8 3.3 3.4 3.2 2.1 12.0 3.4 2.9 3.6 2.1 12.0 3.0 3.2

Agro 2.3 0.1 -0.8 4.6 6.2 4.0 0.0 -0.5 5.7 9.2 4.4 1.8 -1.3 5.9 10.8 4.5 2.4

Pharma 1.4 1.7 1.4 0.4 4.9 0.8 0.8 0.4 0.3 2.3 0.4 0.2 1.6 -0.2 2.0 0.6 0.0

Trading 0.4 0.3 0.4 0.4 1.5 0.5 0.4 0.5 0.3 1.7 0.5 0.4 0.5 0.4 1.8 0.4 0.4

Others 0.1 0.1 0.1 0.5 0.8 -0.1 0.0 0.1 0.6 0.6 0.0 0.0 0.0 0.5 0.5 0.0 0.0

Adjustment -0.6 -0.4 -0.5 -0.4 -1.9 -0.6 -0.4 -0.7 -0.7 -2.4 -0.8 -0.3 -0.7 -0.6 -2.4 -0.5 -0.6

6.7 3.9 3.5 8.1 22.2 8.9 3.6 3.6 9.2 25.3 9.4 4.9 4.9 9.4 28.6 9.5 5.2

16.7% 10.6% 9.3% 16.4% 13.6% 21.0% 9.6% 9.6% 17.2% 14.8% 20.9% 12.6% 12.5% 17.6% 15.8% 21.1% 13.3%

FY2016 Actual

OP Margin



Total

FY2014 Actual

61

1H FY2016 Sales by Segment (1) (¥billion)

1Q 2Q Total 1Q 2Q Total 1Q 2Q TotalChem 8.7 8.0 16.7 8.9 8.6 17.5 8.5 8.0 16.5

Fine 3.0 2.5 5.5 3.0 2.7 5.7 2.8 2.5 5.3

Basic 5.7 5.5 11.2 5.9 5.9 11.8 5.7 5.5 11.2

13.0 13.0 26.0 13.1 13.5 26.6 12.6 12.9 25.5

Agro 13.6 7.5 21.1 12.2 10.1 22.3 14.5 9.5 24.0

Pharma 2.1 1.6 3.7 1.6 1.8 3.4 2.2 1.5 3.7

Trading 14.7 12.8 27.5 14.2 14.6 28.8 14.4 13.2 27.6

Others 4.1 4.8 8.9 4.1 4.7 8.8 4.0 4.6 8.6

Adjustment -11.0 -9.2 -20.2 -10.7 -10.7 -21.4 -11.1 -10.3 -21.4

Total 45.2 38.5 83.7 43.4 42.6 86.0 45.1 39.4 84.5

1H FY2016Actual


1H FY2015Actual

1H FY2016 Outlookas of May 2016


62

1H FY2016 OP by Segment

(¥billion)

1Q 2Q Total 1Q 2Q Total 1Q 2Q TotalChem 1.5 -0.1 1.4 1.5 0.1 1.6 1.5 -0.2 1.3

3.4 2.9 6.3 2.8 3.0 5.8 3.0 3.2 6.2

Agro 4.4 1.8 6.2 3.0 2.8 5.8 4.5 2.4 6.9

Pharma 0.4 0.2 0.6 0.1 0.3 0.4 0.6 0.0 0.6

Trading 0.5 0.4 0.9 0.4 0.5 0.9 0.4 0.4 0.8

Others 0.0 0.0 0.0 -0.1 0.1 0.0 0.0 0.0 0.0

Adjustment -0.8 -0.3 -1.1 -0.6 -0.6 -1.2 -0.5 -0.6 -1.1

Total 9.4 4.9 14.3 7.1 6.2 13.3 9.5 5.2 14.7

1H FY2016Actual


1H FY2015Actual

1H FY2016 Outlookas of May 2016

63

FY2010-2011 : Former Segmentation, FY2012-2016E : New Segmentation

Chem 38.1 24.7% 36.9 24.8% 34.5 22.4% 35.5 21.7% 34.3 20.0% 34.3 19.4% 34.1 18.9%Perf 38.0 24.6% 34.0 22.9% 37.4 24.3% 42.8 26.1% 49.4 28.9% 51.8 29.3% 52.5 29.1%Agro 34.4 22.3% 33.8 22.7% 35.4 23.0% 39.1 23.9% 45.7 26.7% 47.5 26.9% 52.2 28.9%Pharma 9.6 6.2% 10.0 6.7% 12.7 8.3% 11.6 7.1% 8.8 5.1% 8.7 4.9% 7.6 4.2%Trading 44.1 28.6% 44.8 30.1% 46.6 30.3% 50.7 31.0% 54.4 31.8% 55.6 31.4% 58.2 32.2%Others 27.0 17.5% 20.0 13.5% 21.2 13.8% 21.4 13.1% 20.9 12.2% 20.9 11.8% 23.4 13.0%Adj -37.0 -24.0% -30.9 -20.8% -34.0 -22.1% -37.4 -22.8% -42.3 -24.7% -41.9 -23.7% -47.5 -26.3%Total 154.2 100% 148.6 100% 153.8 100% 163.7 100% 171.2 100% 176.9 100% 180.5 100%

Chem 2.4 12.1% 1.6 10.3% 1.9 9.7% 1.9 8.6% 1.9 7.5% 3.9 13.6% 3.7 12.4% 25.8 12.4% 25.2 11.3% 26.6 11.7%Perf 7.9 39.9% 4.8 31.0% 7.2 36.9% 8.8 39.6% 12.0 47.4% 12.0 42.0% 11.7 39.1% 38.0 18.3% 43.9 19.6% 40.9 17.9%Agro 4.8 24.2% 4.4 28.4% 5.0 25.6% 6.2 27.9% 9.2 36.4% 10.8 37.8% 12.8 42.8% 48.6 23.4% 53.6 23.9% 52.9 23.2%Pharma 4.4 22.2% 4.6 29.7% 5.2 26.7% 4.9 22.1% 2.3 9.1% 2.0 7.0% 1.4 4.7% 12.7 6.1% 11.4 5.1% 11.1 4.9%Trading 1.4 7.1% 1.3 8.4% 1.4 7.2% 1.5 6.8% 1.7 6.7% 1.8 6.3% 1.9 6.4% 18.1 8.7% 18.5 8.3% 19.5 8.5%Others 1.0 5.1% 0.3 1.9% 0.7 3.6% 0.8 3.6% 0.6 2.4% 0.5 1.7% 0.7 2.3% 9.1 4.4% 9.9 4.4% 10.1 4.4%Adj -2.1 -10.6% -1.5 -9.7% -1.9 -9.7% -1.9 -8.6% -2.4 -9.5% -2.4 -8.4% -2.3 -7.7% 55.7 26.8% 61.4 27.4% 67.1 29.4%Total 19.8 100% 15.5 100% 19.5 100% 22.2 100% 25.3 100% 28.6 100% 29.9 100% 208.0 100% 223.9 100% 228.2 100%

Chem 6.3% 4.3% 5.5% 5.4% 5.5% 11.4% 10.9% 7.4% 7.5% 14.7%Perf 20.8% 14.1% 19.3% 20.6% 24.3% 23.2% 22.3% 23.2% 27.3% 29.3%Agro 14.0% 13.0% 14.1% 15.9% 20.1% 22.7% 24.5% 12.8% 17.2% 20.4%Pharma 45.8% 46.0% 40.9% 42.2% 26.1% 23.0% 18.4% 38.9% 20.2% 18.0%Trading 3.2% 2.9% 3.0% 3.0% 3.1% 3.2% 3.3% 8.3% 9.2% 9.2%Others 3.7% 1.5% 3.3% 3.7% 2.9% 2.4% 3.0% 8.3% 6.1% 5.0%Total 12.9% 10.4% 12.7% 13.6% 14.8% 16.2% 16.6% 10.7% 11.3% 12.5%

ROA

(E) = (B)/(D

)

FY2014FY2013FY2011

Sales (A)

OP

(B)

OP M

argin(C

) = (B)/(A

)

Segment Assets (D

)FY2015FY2013

FY2010 FY2016EFY2012 FY2015

FY2014

Sales and Operating Profit by Segment (¥billion)

Segment Segment

Chem Fine TEPIC Chem Fine TEPICChemicals Melamine cyanurate Chemicals Melamine cyanurate

HI-LITE HI-LITECustom Chemicals Basic Melamine

Basic Melamine Chemicals Urea, AdBlueChemicals Urea, AdBlue Ammonia, Sulfuric acid, Nitric acid

Ammonia, Sulfuric acid, Nitric acid High purity chemicalsHigh purity chemicals

Performance SUNEVER, NHC,Performance SUNEVER, NHC, Materials ARC® (Bottom anti-reflective coating)Materials ARC® (Bottom anti-reflective coating) OptiStack® (Multi layer process materials)

OptiStack® (Multi layer process materials) Micro lensMicro lens SNOWTEX, Organo silica solSNOWTEX, Organo silica sol Alumina sol, SUNCOLLOIDAlumina sol, SUNCOLLOID CELNAXCELNAX

Agro Agro HerbicidesAgro Agro Herbicides Insecticides

Insecticides FungicideFungicide Active substance of Veterinary medical product

Active substance of Veterinary medical productPharma LIVALO

Pharma LIVALO Custom Chemicals

Trading Nissei Corporation Trading Nissei Corporation

Others Nissan Butsuryu, Nissan Green & Landscape, Others Nissan Butsuryu, Nissan Green & Landscape, Nissan Engineering, Fertilizer Nissan Engineering, Fertilizer

Adjustment Adjustment

Former Segmentation

Main Products

R&D expenses of Advanced Materials & Planning Dept.included

R&D expenses of Advanced Materials & Planning Dept.included

New Segmentation

Main Products

New Segmentation (From October 1, 2013)

64

Segment Products Main ApplicationsChem ◆Fine Chemicals

TEPIC epoxy compound for LED sealants, solder resist, painting Melamine cyanurate flame retardant Environmental product HI-LITE (chlorinated isocyanuric acid for sterilizing)◆Basic Chemicals Melamine adhesive agent for plywood AdBlue solution of urea in demineralised water for diesel trucks to reduce NOx Ammonia, Sulfuric acid, Nitric acid High purity chemicals agents used for cleaning semiconductors

Performance ◆Electronic MaterialsMaterials SUNEVER LCD alignment coating

ARC® bottom anti-reflective coating for semiconductorsmulti layer process material for semiconductors (Si-HM/SOC)

OptiStack® *ARC® and OptiStack® are registered trade mark of Brewer Science, Inc. NHC protective coating for touch panel OPTIFOCUS microlens material for image sensor application ELSOURCE hole injection layer materials for OLED◆Inorganic Materials SNOWTEX water dispersed colloidal silica sol for polishing silicon wafers, special steel sheets, NOx

reduction catalyst, electronic printing materials Organo silica sol film coating, antistatic interference shielding, electronic printing materials Alumina sol automotive catalyst, electronic printing materials SUNCOLLOID high refractive sol for lens CELNAX antistatic sol for film

Agro ◆Herbicide TARGA soybean, rapeseed, sugarbeet PERMIT corn, sugarcane, rice SIRIUS, ALTAIR paddy rice ROUNDUP non-selective herbicide for orchard, noncrop land◆Insecticide STARMITE, SANMITE, MITOKOHNE fruits, tea, vegetables◆Fungicide LEIMAY/ORACLE vegetables, potato, fruits PULSOR, IKARUGA, GREATAM (THIFLUZAMIDE) potato, grape, turf

◆Animal health products Fluralaner (BRAVECTO) active substance of BRAVECTO (veterinary medical product for dogs)

Pharma LIVALO Anti-cholesterol drug Custom Chemicals custom manufacturing and process services for pharmaceutical companies

Trading Nissei Corporation

Others Transportation, Landscaping, Engineering, Fertilizer

Main Products by Segment (New Segmentation)

65

Nissan Chemical, ‐where unique & solution meet

Confidential

Forward Looking Statements The forward looking statements in this material are based on information available at the time of preparation of the material. Although they reflect our current expectations, these statements are not guarantees of future performance, but include a number of risks and uncertainties. Actual results may largely differ from these statements due to various factors which may be beyond company control. No information in this material is provided as an offer to buy or sell the shares of the company. We urge users of the material to make investment decision based upon own judgment.

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